$9.7 million rental housing stabilization plan approved
Seeking to bring financial certainty to planned affordable rental properties squeezed between tight credit markets and increased construction costs, TDHCA has approved a bold rental housing stabilization package totaling $9.7 million through its Housing Tax Credit Program.
The package will help ensure 112 properties receiving tax credits in 2007 and 2008 but not yet completed remain financially feasible and eventually provide an estimated 10,600 low income Texas families with a decent, affordable home.
Funding for this initiative was made possible through the Housing and Economic Recovery Act of 2008 (H.R. 3221), the massive federal economic recovery bill President Bush signed into law in July, which provided the state just over $4.8 million in additional housing tax credits each year for 2008 and 2009.
Tighter credit conditions, combined with construction cost increases over time, have negatively affected properties receiving credits in the past two allocation cycles. Many have been unable to finalize private financing terms due to continued market uncertainties, putting their construction in jeopardy.